MEMBERS OF STANDING COMMITTEE ON INDUSTRIAL POLICY VISITS “ERDENES-TAVANTOLGOI” JSC
B.Choijilsuren, Chairman of the Parliamentary Standing Committee on Industrial Policy, T.Enkhtuvshin, T.Aubakir, members of the Standing Committee, and J.Munkhbat, Chairman of the Standing Committee on Education, Culture, Science and Sports visited ETT mining site to acquainted with the operational activities and had a meeting with management team on September 22, 2020. Members of Parliament to clarify the current situation and challenges of heavy and light industry operating in Mongolia, to intensify research and development work required in the industrial sector, they are working at the local level to provide policy support for future trends in the industry, such as the introduction of new types of products and services, and to develop a draft opinion on improving the legal environment.
Members of Parliament introduced the mine's night shift operations and CEO B.Gankhuyag provided information about the company. The company owns 8 mining licenses for TavanTolgoi, the world's leading coking coal deposit and quality, and owns 85.2 percent of the buildings owned by the owner, ~ 14.75 percent of the 2.5 million people of Mongolia, and ~ 0.05 percent of the companies. The new order coking coal accounts for 75 percent of the geological reserves, which is expected to increase coal geological reserves by 7.3 billion tons, according to JORC's resource assessment and forecast. A total of 65 million tons of coal was mined in July 2020 and have 913 employees.
Due to the expansion of Erdenes-Tavan Tolgoi JSC's operations and the emergence of subsidiaries, there was a need to expand into a holding company, and the members were briefed on the increase in financial performance in 2016-2019. Total coal production since the company's inception reached 66.5 million tonnes as of September 1, 2020, and sales declined sharply in April-June due to a border ban caused by the Kovid-19 epidemic, but the Mongolian-Chinese border According to the Board of Directors, 50 percent of this year's sales revenue was earned in July-September alone, in line with the Board's guidelines on the effectiveness of the "Green Gateway" temporary regulation and the continuation of normal coal sales.
Also introduced the investment and financing situation for 2020. For example, the TavanTolgoi-Zuunbayan and TavanTolgoi-Gashuunsukhait railways and the improved briquette plant, TavanTolgoi Fuel LLC, have not been cut off, which has had a significant impact on the country's economy.
During the briefing, MPs were introduced to projects and programs to increase the company's value, such as equipment upgrades, TavanTolgoi-Zuunbayan, TavanTolgoi-Gashuunsukhait, TavanTolgoi power plant, coal concentrator, conveyor system, water supply and integrated shipping center. Some relevant information was clarified and opinions were exchanged.
